SoftBank AI Surge: Shares Soar 19% as Takaichi’s Rise and AI Partnerships Fuel Japan’s Tech Rally

SoftBank AI surge drives a 19% stock jump as new PM Sanae Takaichi’s pro-tech policies and OpenAI partnerships spark Japan’s biggest tech rally in years.

SoftBank AI Surge Powers Japan’s Market to Record Highs

Tokyo | October 21, 2025 | The Interview Times— In a major SoftBank AI surge, shares of SoftBank Group Corp. jumped 18.9% to ¥24,985, leading the Nikkei 225 to record highs. Investors celebrated the company’s growing AI partnerships and the election of Sanae Takaichi, Japan’s first female Prime Minister, known for her tech-forward economic vision.

This marks SoftBank’s biggest single-day gain in nearly five years, reflecting renewed confidence in Japan’s digital economy.

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Takaichi’s Tech Agenda Sparks ‘SoftBank AI Surge’

The rally was fueled by optimism around Takaichi’s pro-growth policies, which emphasize artificial intelligence, semiconductor manufacturing, and national technology capacity. Analysts are calling the trend the “Takaichi trade”, as tech investors rush to capitalize on Japan’s next innovation wave.

“Takaichi’s government represents a clear signal that Japan will double down on AI and digital infrastructure,” said Yusuke Matsuo, Senior Economist at Mizuho Securities.

Her fiscal blueprint, combining AI incentives and defense-linked tech spending, has lifted both Nikkei and Topix indices — with tech stocks now up 24% year-to-date, largely thanks to the SoftBank AI surge.

Inside the Stargate Project: Fueling the SoftBank AI Surge

At the core of the SoftBank AI surge lies its deepening involvement in OpenAI’s $500 billion “Stargate Project” — a massive global AI infrastructure initiative.

In partnership with Oracle and OpenAI, SoftBank will co-finance five data centers across the U.S., each part of a 7-gigawatt network supporting next-generation AI model training. The total investment exceeds $400 billion, accelerating the path toward 10-gigawatt global capacity for AI systems.

SoftBank’s CEO Masayoshi Son has committed $10 billion in direct capital to Stargate as part of a $30 billion AI investment portfolio, echoing his revived “Information Revolution” vision.

Financial Turnaround Strengthens the SoftBank AI Surge

The SoftBank AI surge gained further momentum after the company reported quarterly profits of ¥421 billion, rebounding sharply from last year’s losses. The gains were driven by Arm Holdings and other AI-linked investments, marking the best performance for Vision Fund since 2021.

Analysts say SoftBank’s exposure to Nvidia, Arm, and OpenAI has restored investor confidence in Masayoshi Son’s global strategy.

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Valuation Warnings Amid the SoftBank AI Surge

While excitement runs high, analysts caution that SoftBank shares may be overvalued. With prices nearing ¥25,000, fair-value estimates range between ¥7,000 and ¥18,600. A Simply Wall St report warns of potential 200% overvaluation, citing high capital intensity in AI and funding risk.

“Investors may be underestimating the financial strain of massive AI infrastructure projects,” said Tomoichiro Kubota of Matsui Securities. Rising global interest rates could also weigh on high-growth stocks like SoftBank.

SoftBank AI Surge Signals Japan’s Tech Renaissance

Despite valuation concerns, the SoftBank AI surge reflects a pivotal moment for Japan’s tech sector. With Takaichi’s government prioritizing digital transformation, Tokyo is poised to reemerge as a global innovation hub alongside the U.S. and South Korea.

As the AI infrastructure race accelerates, SoftBank’s leadership in computing capacity and AI financing may define Japan’s new economic era — blending corporate ambition with national policy momentum.